Demand raised for TDS not deposited by the employer

The Income Tax Department cannot legally recover tax from an employee if the employer deducted the TDS but failed to deposit it. This is strictly prohibited by Section 205 of the IT Act and reinforced by CBDT OM F.No. ________. Since the initial AO grievance failed, the immediate next steps are to officially "Disagree with the Demand" on the e-filing portal, escalate the AO's inaction through the CPGRAMS portal, prepare to file a Form 35 appeal with the CIT(A), and serve a legal notice to the defaulting employer.